A recent report from John Devlin, director at Nottingham University Business School, suggested that many of us are confident in our own abilities and don’t think we need to pay fees to Financial Advisers.
“Our study involved a YouGov survey of more than 2,000 consumers who were quizzed about how they perceived their own financial expertise and the importance of specialist advice. They were asked, for instance, whether they felt they needed help in choosing saving and investment products and meeting their financial goals. More than half said they didn’t believe they required assistance, with less than a third admitting they did; the remainder neither agreed nor disagreed. There was a similar split regarding willingness to pay for financial advice, with the majority disagreeing or strongly disagreeing with the notion.”
Perhaps that is not surprising given that another recent report indicated that Financial Adviser fees have risen by more than 5%, with the average hourly rate now at a staggering £165.70.
If you are using a Financial Adviser how confident are you that the results justify the fees? Using tracker funds and one of the non-advice platforms such as Hargreaves Lansdown (www.hl.co.uk) could save you more than 1% per annum. Doesn’t sound much, but on a fund of £100,000 over a 20 year term that adds up to around a staggering £60,000.
Is there an answer? We think so. By all means pay an adviser when it is really necessary but otherwise use the low cost non-advice platforms backed up by help, support, guidance and education from a service such as The Investment and Retirement Coach.
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